ANNUAL REPORT - beQuoted

2020

ANNUAL REPORT

2ACCONEER ANNUAL REPORT 2020

CONTENTS

The year in brief.................................................................3Comments from our CEO ..................................................4This is Acconeer ................................................................6 Sensors are changing our daily lives ...........................8 Potential customers and applications.........................10 Strong growth for the global 3D sensor market..........12History .............................................................................15The ten largest owners ....................................................16The share ........................................................................16Financial calendar ...........................................................16Board of Directors............................................................17Management...............................................................18-19

Accounts ..........................................................................20 Management report ....................................................20 Income statement.......................................................25 Balance sheet ............................................................26 Cashflowstatement...................................................28 Notes ..........................................................................29 Signatures ..................................................................38 Auditor's Report .........................................................39


THE FINANCIAL YEAR 2020• During the year, major orders were received from

Glyn Limited, CODICO, Digi-Key and BEYD.• XM132, an entry-level module ready for integration

at low system cost, was developed and launched.• Acconeer was awarded three "design wins" by Alps

Alpine for presence detection in cars to a European premium car manufacturer.

• The Annual General Meeting for 2019 was held on the 14th April and Thomas Rex was elected new chairman.

• Acconeer and Alps Alpine entered into a MoU agreement for a joint development agreement on Next-Generation Sensing Technology.

• Acconeer carried out a directed new share issue of 4,062,000 new shares, raising proceeds of approximately SEK 65 million.

• The distributor agreement with Restar was extended to America.

• TheradarsensorA1receivedqualificationAEC-Q100 level 3 for the automotive industry.

• AcconeerbecameISO-certifiedforqualityandenvironmental management system.

• Björn Bengtsson was appointed new CFO.• Purchase agreement with Future Electronics was

signed.• More than 200,000 A1 radar sensors had been

delivered since the company started selling evaluation kits.

• Distribution agreement with Marubun was signed.• Acconeer received an order from BEYD worth USD

420,000, the company's largest order to date.

SIGNIFICANT EVENTS AFTER THE PERIOD• Sweden's Innovation Agency granted Acconeer 4

million SEK for research on sleep monitoring using radar. The project starts in April 2021 and will be a consortium with Sleepiz based in Switzerland and the University of Gothenburg, Sweden.

• Acconeer received orders from CODICO (USD 96,000), Glyn Limited (USD 156,000) and Digi-Key (USD 74,000).

• Acconeer and Alps Alpine signed a joint development agreement of Next-Generation Sensing Technology.

• Itisthecompany'sassessmentthattheeffectsofCovid-19 will have a limited impact of operations in 2021. We expect no impact on either the development side or the manufacture of sensors, whilethemanufactureofmoduleswillbeaffectedby a global shortage on processors that have arisen in connection with Covid-19. Regarding demand for the company's products we expect further delays in customer projects, fewer start-up projects and that ourcustomers'productionratewillbeaffectedbythe lack of processors.

THE YEAR IN BRIEF

KEY INDICATORSKSEK UNLESS OTHERWISE SPECIFIED 2020 2019

Net sales 9,505 5,508

Gross margin 61% 61%

Operating result -62,309 -68 562

Profitorlossaftertax -62,312 -68,539

Cashflow,operatingactivities -50,800 -56,859

Cash and cash equivalents, short-term deposits 82,170 77,954

Equity 120,492 120,179

Balance sheet total 128,442 130,202

Basic earnings per share, SEK* -2.85 -3.58

Diluted earnings per share, SEK* -2.85 -3.58

Cashflowpershare,SEK* -2.32 -2.97

Number of shares 23,300,500 19,238,500

Average number of shares during the period 21,887,147 19,164,881

Average number of shares during the period after dilution 22,869,147 20,055,881

Equity/Ratio, %* 94 92

Equity per share, SEK* 5.17 6.25

Average number of full-time equivalent employees 37 35

*DEFINITIONS OF INDICATORSGrossmargin:Grossprofitasapercentageofnetsales.Regardingthecostofgoodssold,onlythematerialcostisincluded.Costs for the operations and product management function are reported with regard to this in Sales costs and amortization of Intangible assets are included in Research and development costs. More information can be found in the notes 3 and 4.Earnings per share = Net income after taxes divided by the average number of shares during the period.Cashflowpershare=Cashflowfromoperatingactivitiesduringtheperiod,dividedbytheaveragenumberofsharesduringtheperiod.Solidity = Total equity on the balance sheet date, divided by the balance sheet total on the balance sheet date.Equity per share = Equity on the balance sheet date divided by the number of shares on the balance sheet date.


2020 was a year dominated by Covid-19, and looking back we can see that our development has continued as expected, since we always had a strategy to have plenty of material in stock for production to make and ship sensors to meet customer orders. The largest effecthasbeenseenonthesalesandmarketingsidewhere customers have delayed launches and not started new projects to the extent we expected, and we have not been able to travel and meet customers as needed. Despite this Acconeer has taken big steps forward during 2020.

2020startedoffasusualwithCESinLasVegaswhere we rent a suite and invite around 30 customers for demonstrations and discussions during a week. It was during CES we asked Alps Alpine if they were interested in developing the next generation radar sensor together with Acconeer. The thought was to combine Acconeers radar expertise with Alps Alpine’s expertise in the automotive industry to develop a state-of-the-art radar for systems within the chassis of a car, but to also be able to solve certain use case on the exterior of a car. Alps Alpine showed interest and invited Mikael Egard, COO, and me to a week’s workshop where we made a common plan. The result was a direct investment of three million USD by Alps Alpine in Acconeer, making them our second largest owner, and an MoU regarding joint development of A2 where Alps Alpine will contribute up to 7 million USD. InApril2020theprojectwasstartedwithdefinitionofrequirements,identificationofIPsuppliersandproductionpartners and negotiation of prices and contracts with these. A contract based on the MoU was signed in March this year. The establishment of theA2projectwasthemostsignificanteventof2020,as it means that we have now secured that Acconeer will not be a one product company but that we have

During 2020 Acconeer continued to grow while we at the same time deepened our cooperation with Alps Alpine

the muscles to develop the next generations of radar sensors.

We also had success together with Alps Alpine when we were able to announce three new design wins with a European premium car manufacturer in the use case of interior detection. Our sensor is used to detect living objects inside a car. For each car we sellonesensorperseat,whichmeansfiveorsevensensors per car, making this a large deal. Together with Alps Alpine we now have a total of six design wins in the automotive industry.

Acconeer’s strategy to sell through distributors and partners around the world has helped us a lot during 2020 when we have not been able to travel. During the year we have continued to develop our market channels, and we now have sales through threedifferentchannels;directsales,salesthroughdistributors and sales through system integrators. Our distributor network is soon complete with nine local distributors covering all large markets and Digi-Key selling globally. This means that all customers have a choice of at least two ways to buy our products, which creates a healthy competition between our distributors.

Thesaleofevaluationkitsisanimportantfirststep on the road to customer launches and an

COMMENTS FROM OUR CEO


acknowledgment that the product is attractive. Throughout 2020, sales of evaluation kits have remained on a high level, and by the end of the year, we can conclude that we have sold more than 3100 evaluation kits since launching on Digi-Key, of which as much as 501 were sold in the fourth quarter. This translates to more than four per day on average during 2020, which we are delighted with. The quality of companies that buy evaluation kits is very high, and among the customers, there are many large global technology companies.

We really see that the large sales of evaluation kits has resulted in an acceleration of the number of customers who have launched products based on Acconeer’s sensor. At the the end of the year, 34 customers had launched products within the areas identifiedasinitialfocusareas;parkingsensors,level measurement, presence detection and robotics. Geographically, fourteen of these customers are found in China, eleven in Europe, four in Korea, two in Japan and one each in the US, Taiwan and New Zealand. A distribution showing the strength in the global sales and distribution network we have built.

In the semiconductor industry, it is expected that it takes between 12 and 24 months from a product launch to a customer launch. Gross margin is an important variable in the semiconductor industry, and ourmarginfor2020reachedthehighfigureof61percent, which we believe will decrease somewhat as larger customers launch high-volume products. Our goal is to over time have margins between 40 and 60 percent, which is in par with the semiconductor industry in general.

Acconeer continues to launch new innovative

products. We launched our Entry Module XM132 which has been requested by many customers. Our Entry Module is optimized with small memory and processing power to give the lowest possible system cost for the customer. Acconeer has for a long time researched the area of gesture control, and during CES 2019, we presented an application for gesture control of headphones together with Imagimob, who are experts in edge AI. During 2020 we took the concept a step further and presented gesture-controlled in-ear headphones together with Imagimob and OSM Group.

Acconeer will continue to invest heavily in research and product development as well as in patents, entirely in line with what a product company should do. The company now has 8 patent families with a total of 22 patents granted and 9 pending patent applications. The patent portfolio covers various geographical regions - the United States, Europe, China, Japan, and Korea. Acconeer's most important patents covering the radar system are now granted in the EU, USA, Japan and China.

Certificationsandqualitysystemsareveryimportant for companies in the semiconductor business, Acconeer has during 2020 worked intensely to show our customers that we can live up to high productrequirements.Ourproductwascertifiedaccording to AEC-Q100, which is an industry standard for the automotive business. In addition, Acconeer asacompanywascertifiedaccordingtoISO-9001for quality management system and ISO-14001 for environment management system.

Ifindthattheinterestinourproductremainsveryhigh, and we still get the feedback that what we do is unique.

Acconeer's main goal right now is to seize the opportunities to grow quickly, under controlled forms, to establish a leading position in the area of low-power radar for mobile devices. Expansion is a high priority.

Lund, 24 March 2021

Lars Lindell, CEO Acconeer AB (publ)


THIS ISACCONEER

Acconeer's major competitive advantages include the low power consumption, the precision, the compact size and the low cost. These properties are especially important in battery-powered mobile consumer products,makingtheAcconeerradarsensorthefirstradar sensor that can be integrated in products on this high-volume market.

In 2020, Acconeer saw many customers launch their products and start mass production. In addition the radar sensor is currently under evaluation by a large number of prospective clients - large global companies as well as smaller innovation companies. They explore uses and provide feedback on the product's performance within their own applications.

Thedynamicsvarybetweendifferentbusinesssegments, which means that the process towards productlaunchrequiresdifferenttimeframes.Duetothisfact,Acconeersfirstcustomerlaunchesareseen in faster-moving industries such as the Internet of Things (parking sensors and various kinds of level measurements among other products) and consumer

market robotics. The automotive industry is another focus area, but is expected to take a little longer.

Acconeer was founded in 2011 by (among others) the entrepreneurs Mats Ärlelid, Mikael Egard, Mårten Öbrink and Professor Lars-Erik Wernersson. Mats and Mikael got to know each other at the University, where they both studied nanotechnology. They eventually completed their Ph.D.:s together in a research project at the University of Lund led by Lars-Erik Wernersson. Based on this university research, Acconeer has created an innovative radar sensor that combines the advantages of existing radar technologies.

A LARGE AND GROWING MARKETAcconeer's radar is addressing an existing and large marketfor3Dsensors;amarketthatisexpectedtocontinue to grow rapidly considering a number of key industrytrendssuchas5G,ArtificialIntelligenceandthe Internet of Things. The market is mostly served by ultrasonic transducers, infrared sensors and differentkindsofcamerasolutionstoday.Thismeans

Based on research from Lund University, Acconeer has created a radar sensor that combines the best of existing radar technologies and creates new opportunities for human interaction with technology. The radar sensor combines the low power consumption of a pulsed system with the high accuracy of a coherentradar,andalsoprovidestheopportunitytoidentifydifferentmaterials- all in a 5x5 mm component. The radar sensor can be used for distance measurement, gesture control, materials characterization and camera-aided applications. The most interesting domains are:

CONSUMERELECTRONICS

INTERNET OF THINGS

INDUSTRIAL &AGRICULTURE

HEALTHCARE & FITNESS

AUTOMOTIVEROBOTS


thatAcconeerwillnothavetocreateanewmarket;instead, it can replace existing solutions which all have theirspecificweaknesses.

ATTRACTIVE GROWTH AND RETURNSThehardwareforthefirstAcconeerproducthasbeenavailable for approximately two years, and has now been shipped to a number of customers who are in differentphaseesofevaluation,prototyping,marketlaunch and mass production. The use of Acconeer sensors in large-volume consumer products will generateaprofitablebusinessoperation.Atthesametimeassalesandmarketingactivitieshaveintensified,the company is focusing on developing the next generation radar sensor.

HEADQUARTERS IN THE ÖRESUND REGION, EXPERIENCED MANAGING BODY Acconeer is based in and has its headquarters in Lund. The company has a competent and experienced managing body and board of directors. The company is directed by CEO Lars Lindell, with a mobile industry background encompassing managerial positions within sales and business development in startups as well as large international companies. Co-founders Mats Ärlelid and Mikael Egard are responsible for developing the new radar technology, and are co-inventors of several of the patents. During 2021 the company is planning to move to Malmö.

LISTED ON NASDAQ FIRST NORTH GROWTH MARKETThe Acconeeer share is listed on Nasdaq First North Growth Market, Stockholm, since 11 December 2017.

AWARDSAcconeer has been given the Innovation of the Year award at the Swedish Mobile Awards, and has been named as one of the 33 most interesting startups

inSwedenbythemagazinesAffärsvärldenandNy Teknik. In 2018, the international research and advisory company Gartner proclaimed Acconeer as oneoftheirthreeglobal"CoolVendors".

OBJECTIVEAcconeer will take its opportunities to grow quickly - but in a controlled manner - in order to establish a leading position in the segment of ultra-low-power radar for mobile devices. Expansion is thus the company's priority.

OPERATIVE GOALSIn 2020, Acconeer had:• Sold more than 4 evaluation kits per day• A total of 20 customer launches globally • Signed an MoU with Alps Alpine concerning joint

development of next generation radar sensor• Launched an Entry module with focus on optimal

system cost • Been granted six patents

The objectives for 2021 are to: • Continue to sell more than three evaluation kits

per day • Accelerate the launch of customer products to

morethanfiveperquarter• Get more design wins from the automotive

industry • Invest in the development of next generation

radar sensor together with Alps Alpine• Win customers in new application areas • Continue to focus on aggressive revenue growth • Continue to grow the patent portfolio


SENSORS ARE CHANGING OUR DAILY LIVES

Asensorisadevicethat–similartoourownfivesenses – can detect its surroundings and provide feedback in the form of data. Signals are processed withdifferentmethods,suchaslight,ultrasoundorcamerasolutions.Differentsensors,moreorlesssophisticated, make it possible to measure position, depth, distance, thickness and surfaces, so that a three-dimensional image of an object can be generated.

Imaging sensors are commonplace for example in the entertainment industry, and position sensors, pressure sensors and temperature sensors are often found in consumer electronics, and in medical and military applications. Sensors are used for everything from controlling a robot vacuum at home to measuring the amount of fuel in the tank of a car, or to control tools and robots in the manufacturing industry.

AN ESTABLISHED MARKET, READY FOR INNOVATIONThrough the technological development, the world has become more connected and interconnected. Not only does this enhance the acceptance of sensors, but it also increases the demand for products with convenient user experience – not least within consumer electronics, where Acconeer believes the potential for growth will be strong in the years to come. This implies a demand from the market for cost-efficienttechnology,withhighprecision,lowpowerconsumption, simpler integration and design and enhanced functionality – and that is also reliable and robustenoughtoworkindifficultenvironments. Many conventional sensors on the market are limited by their sensitivity to light and/or sound, or byabulkysizethatmakesitdifficulttomountthemoptimally where they are needed the most. Gesture control, for example, often translates to high power consumption,whilecamera-aidedmeasuringmayfind

itself limited by daylight and distance. Some sensors are obstructed by dust, and many sensors are unable totelldifferentmaterialsapart. There are, thus, several potential markets for sensors, but it is also a market where intense development of new applications that will require more sophisticated software is taking place. A few early developers are currently breaking new ground, for example in sophisticated gesture control and 3D mapping. This is going to open additional markets and applications, and there appears to be no boundaries to the role technology may take on in our everyday lives in just a few years time.

THE PRODUCT – A COMPACT AND ENERGY-EFFICIENT RADAR SENSORSize, energy consumption and high cost have previously prevented the use of radar technology in consumer electronics, which means that Acconeer's energy-efficientandphysicallycompactradarsensorcan open up new opportunities for interaction.

PULSED COHERENT RADARThe radar sensor from Acconeer is a pulsed coherent radar, PCR, based on a patented solution where the low power consumption of a pulsed system is combined with the high accuracy of a coherent radar.

In simple terms, extremely short high-accuracy pulsesaretransmittedtowardsanobjectandreflectedback to a receiver with high time resolution to detect multiple objects with millimeter accuracy. Acconeer's radarsensorisspecifiedintheunlicensed60GHzfrequencyband.Thisbringsanumberofbenefits;forinstance, it allows for extreme miniaturization.

LOW POWER CONSUMPTIONThe radar sensor is capable of performing more than 1000 measurements per second, and at fewer measurements (less than 10 times per second) power


consumptionremainsinthemicrowatt(μW)range.This is the requirement for integration in mobile devices. The low power consumption also enables applications within the Internet of Things, where sensors have to be battery powered and still have long life cycles without charging or battery replacement.

MOTION AND GESTURE CONTROLSince the radar sensor is able to perform measurements continuously, it is possible to detect the speed of an object as well. It is also possible todetectseveraldifferentobjectswithasinglemeasurement. By measuring motion, smart robots and tools could make use of Acconeer's technology to understand their surroundings and keep track of moving objects. Furthermore, continuous measurements enable gesture control, which is an attractive feature in smartphones, smartwatches and many other applications.

MATERIALS CHARACTERIZATIONAcconeer's radar sensor provides the opportunity to categorize materials. This feature could be used in a robot vacuum cleaner to avoid puddles of water, or to adaptthepowertodifferentsurfaces.

EASILY INTEGRATEDThe signal can penetrate materials such as plastic or thin adjacent glass, which means that the radar sensor doesnotrequirean"unobstructedview";itcanbeputbehind a plastic cover or behind the glass of a display. This allows the customers greater freedom in the design of their products, and it also translates to better performance in polluted environments (compared to, for instance, lens-based sensors, where dirt can cause the sensor to "go blind"). In the 60 GHz band, light, temperature and sound do not interfere with the radar sensor's signal. The low power consumption and the compact size of the radar sensor also leaves customers more freedom in how to integrate it into their product.

HIGH ACCURACYAcconeer's radar sensor can perform absolute distance measurements with millimeter accuracy and relative distance measurements with a micrometer accuracy across the entire operating range, which is up to 10 meters depending on the surface and the material of the measured object.


The unique properties of Acconeer’s radar sensormakesitagoodfitwithgreatpotentialfor a large number of applications, such as distance measurement, gesture control, materials characterization, detection of objects and people, and camera-aided applications. Our customers are found in a wide range of products and business areas such as industry automotive industry, smart homes andconsumerelectronics.Acconeerhasidentifiedanumber of segments with a strong and clear need, and where there is potential for larger volumes.

ROBOTSArobotcanbecomesafe,efficientandsmartthroughthe use of radar sensors that gather information and generate understanding of the surroundings and materials

Obstacle detection: Helps robots to avoid obstacles. In this area Acconeer has seen customer launches from among others Japanese Groove-X, whose social robot Lovot avoids obstacles thanks to Acconeer’s radar sensor.

Materials: A robot vacuum cleaner could for example adapt the power to the surface material and achievebettercleaningeffectandreducedenergyconsumption.Itcouldalsodetectpuddlesoffluidonthefloor,sothatitcouldmaneuverarounditinsteadofgoing through it and spreading it out further.

CONSUMER ELECTRONICS The segment of consumer electronics contains a wide range of products such as headphones, smartphones and other devices in homes. In this area, Acconeer has seen customer launches with among others Japanese Yukai, who uses Acconeer’s technology for presence detection so that the product wakes up when a person approaches.

Gesture control:Inthefieldofgesturecontrol,Acconeer is driving an initiative together with Imagimob and OSM Group, where a platform for gesture control has been developed together with a working prototype of gesture-controlled in-ear headphones.

INTERNET OF THINGSPower-efficientsensorsplayacentralroleintheInternet of Things, for example when developing Smart Cities and Smart Homes. The radar sensor provides accurate,richandreliableinformationandsatisfiestherequiredpowerconsumptionperformance;IoTproducts often require a battery lifetime of multiple years.

Parking sensors: Enables the registration of vacantandfilledparkingspaces.Thisisanapplicationwhere Acconeer’s technology enabling smarter, battery-powered solutions has led to great success and several customer products are already launched in China, Korea and Europe.

Presence detection: Connected radar sensors can detect and track human presence to improve security and, for example, to optimize the use of air conditioners.

Gesture control: Connected systems and units can be controlled easily, without the need for screens or bulky buttons.

INDUSTRY AND AGRICULTUREThe radar sensor enables precise regulation, added safety and cordless installations in industrial and professional electronics tools. When compared to solutions in use today, radar technology provides a much more robust system for operation in contaminated and dusty environments, which opens up new opportunities in that market.

CUSTOMERS AND APPLICATIONS


Motion sensor: Automatic doors and vibration meters.

Safety applications: Detection of human presence,handsorfingersnearanoperatingrobotora tool to avoid accidents and injuries.

Measurement of fluids: Radar sensors can accuratelymeasurelevelsoffluidsfromtheoutsideof a tank. This is an area where several customer products have been launched, including German Packwise and a number of Chinese customers.

HEALTHCARE & FITNESSAcconeer's technology creates new opportunities in healthcare through the combination of detection properties and easy integration.

Vital signs: Breathing or pulse rate monitoring. Motion sensor technologies in use today are resource-demanding, while the power consumption of Acconeer's technology is in the microwatt range (μW).Futurehealthcareproductscouldthereforebedeveloped to monitor babies, pulse rate or breathing. Acconeer conducts research in this area together with Swiss Sleepiz and Gothenburg University.

Presence detection: The radar sensor can detect and track persons without the breach of personal integrity that camera surveillance may be associated with.

AUTOMOTIVEIn the automotive industry, Acconeer has an established cooperation with a strategic partner, Alps Alpine, and the companies have several design wins together. Current use cases are in presence detection and for safety and access control.

Presence detection: Using Acconeer’s radar sensor, the car can detect and notify the driver if a child or a pet has been left behind in the car.

Safety and alarms: Enables activation of alarms or safety systems when persons are detected close to or inside the vehicle.

Access control: Acconeer’s radar sensor is used for easy opening of the trunk by a simple movement of the foot under the car.

Gesture control: An area where Acconeer sees potential is to easily control music and other vehicle functionswithoutdistractingattentionfromtraffic.


The market for 3D sensors has experienced tremendous growth in recent years, and the market is expected to grow from USD 2.9 billion in 2020 to USD 10.0 billion by 2025, at a CAGR of 27.3% during the forecast period.* In step with the development of new innovations and products, in particular in the consumer electronics and optics segments, demand is increasing for features such as accuracy and precision as well as for security and surveillance systems.

The most important drivers of the growth of the global 3D sensor market are the continuous development of sensor technology, the increased demand and impact of 3D sensors in consumer electronics products, demand for 3D sensors from the gaming industry and the need for more sophisticated safety and surveillance systems.

WELL ESTABLISHED SENSOR MARKET EVOLVES WITH 3D SENSORS3D sensors usually utilize light (IR) or sound, but sometimes radar as well, to measure depth, a distance or the thickness of an object. They contribute to better understanding and improved procedures in a number of industries and market segments. 3D sensors can be seen as an evolution of the already well-developed sensor market, and are considered very suitable for applications in healthcare, automotive industry, consumer electronics, industrial robotics and safety and surveillance systems.

In recent years, the market has experienced greater acceptance and development of motion detection in

consumer electronics. This has led several analysts tobelievethatthetechnologyhassignificantpotentialin this segment. The main arguments for 3D sensors arethatthetechnologyiscost-efficient,reliableandeffective.Acconeer'sradartechnologycurrentlyemploys two leading technologies: pulsed radar and coherent radar. The advantage of a pulsed radar is primarily its low power consumption, while the coherent radar's advantage is its high accuracy. Unlike most of the sensors on the market, Acconeer's radar sensor technology is based on high-frequency pulsed radiosignals;ourassessmentisthatitismoreenergy-efficientandmoreeasilyintegratedinproductsthan,for example, technologies based on IR or ultrasound.

LARGE DEMAND IN MANY APPLICATION AREAS Digitalization will be the single biggest driver of societal change in the next ten years. The development is making the world more connected and interconnected. More and more people are demanding faster, reliable and user-friendly technologies that function together. The demand for products with good functionality and convenient user experience is especially strong on the consumer electronics market, which also is the segment where we expect the highest growth in the years to come. This segment includes the development of tablets, smartphonesandpulsewatchesaswellasvirtualreality(VR)andmotion detection, for example in the gaming industry.

STRONG GROWTH FOR THE GLOBAL 3D SENSOR MARKET

* Markets and Markets, 3D sensors market,

Global trend & forecast to 2025 (2020).


A SEGMENTED MARKETThe global 3D sensor market is segmented and can be divided into several categories: product type, technology, form of use and region. With respect to producttype,acommondifferentiationisbetweenposition sensors, pressure sensors, imaging sensors, temperature sensors and other sensors. Imaging sensors constitute the largest market share and is expected to maintain a high growth rate.

When segmenting on technology, a common differentiationisbetweenstructuredlightprojection,ultrasound,stereoscopicimagingandtime-of-flighttechnology. As for form of use, the market is divided bytheapplicationsindifferentmarketsegments.Thisincludes consumer electronics, medical, automotive, industrial, entertainment and defense applications. At the time of writing, the largest market segment is the entertainment industry.

Innovationsandnewproductsinseveraldifferentareas also contribute to increasing demand for products that meet the speed, functionality and accuracy requirements but still are sustainable, environmentally and quality-wise. To meet the market's increasing requirements and demand has a lot to do withbeingabletooffercost-efficienttechnologywithhigh precision, low power consumption, enhanced functionality and robustness.

COMPETITIONAcconeer assesses that there mainly will be two types of competition: other radar sensors and alternative technologies.

RADAR COMPETITORSExamples of radar sensor developers that Acconeer believestobepotentialcompetitorsareInfineon,Texas Instruments, and Novelda. Most of the competing radar products are FMCW Radars (Frequency-Modulated Continuous Wave). "Continous" refers to the fact that they are transmitting all the time, hence consuming more energy than Acconeer's pulsed coherent radar.

Acconeer's pulsed coherent radar is optimized to perform close-range detection with high accuracy and low power consumption. This is possible due to the unique systemic solution developed by Acconeer to meet the requirements for battery-powered consumer products.

ALTERNATIVE TECHNOLOGIESAcconeer's product can be applied to a number of existing markets where technologies such as infrared sensors, ultrasonic transducers or magnetometers already are established. As for alternative technologies, examples of developing companies include Murata (ultrasonic sensors), STMicroelectronics (IR sensors), and Honeywell Microelectronics (magnetometers, radar).

Infrared radiation, IR for short, is electromagnetic radiation with longer wavelengths than those of visiblelight.Ingeneral,IRsensorsmaysufferfrominterference from light sources, such as daylight or LEDlamps.Furthermore,lightreflectsdifferentlydependingonthecolorofthereflectingobject.Blackobjects,forexample,reflectpoorly,whichcouldcause


lower accuracy or even failure. A light-based sensor also requires an unobstructed line of sight in order to work, which makes it sensitive to dirt and dust and thusmoredifficulttointegrateinafinalproduct.

Ultrasound is sound waves with frequencies higher than the upper audible limit of human hearing. The speed of sound is temperature dependent, which impacts performance and accuracy. Ultrasonic sensorsmayalsosufferfrominterferenceinnoisyenvironments. An ultrasonic sensor also requires an open aperture (without obstruction) to work.

Amagnetometermeasuresthemagneticfieldinaspecificdirection.Itissensitivetoelectromagneticinterference caused by electrical sockets, underground transformers,electricvehicles,electrifiedlightrailwaysand so on.

Acconeer's radar sensor has a competitive robustness compared to other technologies, thanks to its high resilience to natural sources of interference such as light conditions, dust, dirt and temperature conditions. A radar is only disturbed by other radio sources that operate in the same frequency range. The robustness of Acconeer's product is also a result of the physical properties of the radar signal, which allow the sensor to be integrated within a plastic or thin glass casing. For the customer, this translates not only to better robustness but also provides design, integration and maintenance advantages.

The low power consumption, the millimeter accuracy, and the ability to detect materials and motiongiveAcconeer'sradarsensorasignificantcompetitive advantage over other technologies.


HISTORY


THE TEN LARGEST OWNERS 2020-12-31

NAMENUMBER OF

SHARES SHARE %

BGA Invest AB 2,717,500 11.66

Avanza Pension 1,967,365 8,44

Alps Alpine CO LTD 1,854,300 7.96

NordnetPensionsförsäkring 909,436 3.90

Wingren Hightec 775,468 3.33

Nord Fondkommission AB 665,299 2,86

Ardventor AB/ Egard, Mikael 581,550 2.50

Ärlelid, Mats 571,000 2.45

Lars Erik Wernersson AB 556,500 2.39

Peak Asset Management 286,000 1.23

10,884,418 46.71

Other shareholders 12,416,082 53,29

Total number of shares 23 300 500 100%

THE SHARE

FINANCIAL CALENDARAnnual General Meeting 2021 .................... 2021-04-27Q1 Interim report 2021 ............................... 2021-04-23Q2 Interim report 2021 ............................... 2021-07-23Q3 Interim report 2021 ............................... 2021-10-29Year-end report 2021.................................20211-02-18

The Annual General Meeting will be held on Tuesday, 27 April 2021. Due to the covid-19 pandemic, the AGM will be conducted by advance voting. More information will be included in the notice convening the AGM.


BOARD OF DIRECTORSTHOMAS REXBorn in 1963. Chairman of the board since 2020, member of the board since 2014.Education and experience: Master of Science in Electrical Engineering, University of Lund.Other current assignments: SeniorVicePresidentpåFingerprintCards,Special Projects. Previous assignments: Global Sales Manager at Fingerprint Cards.VicePresidentofEricssonMobilePlatformsAsia.Shareholding: Private holding of 115,260 shares.

LARS-ERIK WERNERSSONBorn in 1968. Member of the board since 2011.Education and experience: Professor in Nano Electronics at the University of Lund since 2005. Other current assignments: Member of the board of C2Amps AB, member of the board and owner of Lars Erik Wernersson AB.Previous assignments: Member of the board of the Royal Physiographic Society of Lund, Shareholding: 556,500 shares (through the company Lars-Erik Wernersson AB).

GIT STURESJÖ ADOLFSSONBorn in 1961. Member of the board since 2015.Education and experience: Economics, University of Lund.Other current assignments: ChairmanoftheboardsofSmartRefilliHelsingborgABandDigimailSwedenAB.BoardmemberofBGAFÖRVALTNINGAB,BGAInvestABandMinestoAB. Deputy board member of Watersprint AB.Previous assignments: Member of the boards of BGA Capital AB and Bacapps Support.Member of the boards and CEO of Facino AB, Facino Produktion AB, Facino Produktion AB, Facino AS.Shareholding:2,717,500shares(throughthecompanyBGAINVESTAB)andprivateholdingof28,000 shares.

BENGT ADOLFSSONBorn in 1949. Member of the board since 2015.Education and experience: Economics,VäxjöUniversity.Other current assignments: Chairman of the Board of Minesto AB. Member of the boards of BGAFÖRVALTNINGAB,MinestoWarrantsOneABandSmartRefilliHelsingborgAB.DeputyboardmemberofDigimailSverigeAB.MemberoftheboardandmajorityownerofBGAINVESTAB.Previous assignments: Member of the boards of BGA Capital AB and Bacapps Support. Member of the boards and CEO of Facino AB, Facino Produktion AB, Facino Produktion AB, Facino AS.Shareholding: 2,717,500shares(throughthecompanyBGAINVESTAB).

JOHAN PAULSSON Born in 1963. Member of the board since 2019.Education and experience: MSc Engineering University of LundOther current assignments: CTO at Axis Communications AB, Chairman of the board Winplantan AB.Previous assignments: Board member poLight A/S.Shareholding: Privat holding of 192 213 shares.


MANAGEMENT

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LARS LINDELLBorn in 1963. CEO. Employed since 2015.Education and experience: Master of Science in Electrical Engineering, University of Lund. Master of Business Administration, University of Cambridge.Other current assignments: Member of the board of Acconeer Incentive AB.Previous assignments: Sales Manager of Business Unit Modems of Ericsson Lund (2014 – 2015). Country Manager of ST-Ericsson Japan (2009 – 2014).Shareholding: Private holding of 108,602 shares and 77,172 warrants.

MATS ÄRLELIDBornin1979.ChiefTechnologyOfficer.Employedsince2012.Education and experience: PhD in Integrated Circuit Design, University of Lund. Master of Science in Electrical Engineering, University of Lund.Other current assignments: -Previous assignments: Member of the board of Acconeer AB until 2014-03-25.Shareholding: Private holding of 571,000 shares and 5,369 warrants.

MIKAEL EGARDBornin1982.ChiefOperatingOfficer.Employedsince2012.Education and experience: PhD in Physics, University of Lund. Master of Science in Engineering Physics, University of Lund.Other current assignments: Member of the board and owner of Ardventor AB. Alternate board member of Acconeer Incentive AB.Previous assignments: CEO and member of the board of Acconeer AB. Shareholding: Holding of 581,550 shares and 45,070 warrants in total, privately and via Ardventor AB.

MAGNUS HANSSONBorn in 1964. Head of Operations. Consultant since 2016.Education and experience: Master of Science in Electrical Engineering, Lund University.Other current assignments: Member of the board in BeammWave AB.Previous assignments:Variousassignmentsasconsultantinthehigh-techsector.Shareholding: 5773 shares through Magnus Hansson Konsult AB.

MIKAEL ROSENHEDBorn in 1962. Head of Product Management. Employed since 2016.Education and experience: Master of Science in Electrical Engineering, University of Lund.Other current assignments: -Previous assignments: IT Management Consultant (2015 – 2016), R&D Manager Software of Sony Mobile Communications, Lund (2011 – 2015).Shareholding: Private holding of 1,600 shares and 11,751 warrants.


MANAGEMENT

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DAVID HÅKANSSON HAGMANBorn in 1970. Head of Customer Support. Employed since 2017.Education and experience: Systems Science, University of Lund, and Media and Communication Studies, University of Lund.Other current assignments: -Previous assignments: -Shareholding: Private holding of 4,000 shares and 71,022 warrants.

BJÖRN BENGTSSONBorn in 1966. CFO. Consultant since 2020.Education and experience: Studies in economics at Lunds University 1988-1991, Authorised auditor.Other current assignments:BusinessleaderandconsultantataccountingfirmFinansBalans.Previous assignments: -Shareholding: -

MAGNUS GERWARDBorn in 1974. Business Development Director. Employed since 2016.Education and experience: Master of Science in Electrical Engineering and Technology Management, University of Lund.Other current assignments: -Previous assignments: Head of Market Unit and Sales Director, Tieto (2013 – 2016). Business Development Director, Scalado (2010 – 2013).Shareholding: Private holding of 12,000 shares and 59,921 warrants.

ANNA ALERYDBorn in 1980. Head of Marketing and Communications. Employed since 2019.Education and experience: Master of Science in Automation and Mechatronics, Chalmers University of Technology. Other ongoing assignments: - Previous assignments: Head of Developer Communication, Developer Program, Sony Corporation. Shareholding: 1,933 shares and 31,218 warrants.


MANAGEMENT REPORT

TheBoardofDirectorsandtheChiefExecutiveOfficerof Acconeer AB hereby present the annual report for thefinancialyear2020-01-01-2020-12-31The annual report is prepared in Swedish kronor, SEK.

INFORMATION ABOUT OPERATIONSThe object of the Company’s business is to develop, construct, manufacture, license and sell high-frequency electronics. The company is seated in Lund, Sweden.

SIGNIFICANT EVENTS DURING AND AFTER THE FINANCIAL YEARIn 2020, a new share issue of 4,062,000 shares was carried out. The share capital thus amounts toSEK 1,165,025 and the number of shares to 23,300,500. The directed share issue was subscribed for by Alps Alpine Co.,Ltd. as well as a number of institutional investors and contributed the company approximately SEK 65 million.

Acconeer was awarded three "design wins" by AlpsAlpine for presence detection in cars to a Europeanpremium car manufacturer.

A non-binding Memorandum of Understanding(“MoU”) on a joint development agreement to developthe next generation of patented pulsed coherentsensor was entered into with Alps Alpine.

TheradarsensorA1wasqualifiedaccordingtoAEC-Q100level3andthecompanywascertifiedfor quality and environmental management systems according to ISO standards 9001: 2015 and 14001: 2015.

Events during 2020Thecompany'sfirstmajororderoftheyearwasreceived from Glyn Limited in February. The value amounted to USD12,800 and referred to the radar sensor A1. The same month the company receivedan order from Digi-Key worth USD 15,100. The order referred to the IoT module XM122.

At the end of February, Acconeer received an order from CODICO worth USD 62,700. The order referred to the radar sensor A1 on behalf of a European customer.

It was announced that in february, 24 months after thecompanystartedsellingEvaluationKits(EVKs)at Digi-Key, Acconeer AB had shipped more than 100,000 radar sensors to distributors and customers.

In March Acconeer received an order from a European customer worth USD 14,700. The order relates to Acconeer's A1 radar sensor, for production of the customer's IoT solution.

In the middle of March the company announced that they are planning to develop an integration-ready entry module with low system cost. The entry module, XM132, was released during the third quarter of 2020.

Acconeer announced at the end of March that the company was awarded three design wins by Alps Alpine for presence detection in cars to a European premium car manufacturer. Acconeer estimates the total potential value of the design wins to US$ 9-12 million over three years starting in 2022. By "design win" Acconeer refers to that the company's radar sensor has been selected for use in a customer product, but it is not equivalent to that an order has been placed.

In April Acconeer received an order from Digi-Key worth USD 29,500. The order related to the XM112 High Performance Module and related connector board and lens kit.

On April 24 the company announced that they had entered into a non-binding Memorandum of Understanding (the "MoU") of a joint development agreement to develop next generation patented Pulse Coherent sensors. The MoU prescribes that Alps Alpine will contribute up to USD 7 million towards the development of the product and that Alps Alpine will, on commercial terms, receive exclusivity for the new product for the automotive market. The product is planned to be ready for production during 2023.

On May 4 Acconeer announced its intention to carry out a directed new share issue of approximately SEK 60 million to Swedish and international institutional investors. Alps Alpine Co., Ltd., undertook to subscribe for shares corresponding to a maximum of USD 3 million in the directed new share issue. Later that day, it was announced that the Board of Acconeer AB, had with support of the authorization granted by the annual general meeting 14 April 2020, resolved on and carried out a new share issue of 4,062,000 shares. The subscription price of the shares in the directed new share issue was SEK 16 per share. Through the directed new share issue Acconeer received proceeds amounting to approximately SEK 65 million before deduction of transaction costs. The directed new share issue was subscribed for by Alps Alpine Co., Ltd. and a number of institutional investors.

In May it was also announced that Acconeer has extended the agreement with Restar Electronics Corporation to include the Americas. Since July 2019 the two companies have a distributor agreement for the Japanese market, and the decision to extend it to


the Americas comes as a natural result of the good progress seen in Japan.

At the end of the month, the company received an order worth USD 28,400 from Taiwanese Chip Power Technology Corp. The order was for Acconeer's radar sensor A1.

In June, Acconeer's radar sensor A1 received qualificationaccordingtoAEC-Q100level3,whichcovers temperatures between -40°C - +85 °C. The qualificationwascompletedaquarteraheadofpreviously announced plans.

InJuneAcconeeralsoreceivedISOcertificationfor quality and environmental management systems under the ISO Standards 9001:2015 and 14001:2015 for development and sales of radar sensors, modules and software.

At the end of June, Acconeer received an order from Digi-Key worth USD 30,000. The order relates to the radar sensor A1 and the reference card XR112.

In August, Acconeer received an order from Digi-Key worth USD 52,000. The order relates to Acconeers XM132 Entry Module and the relates evaluationkit(EVK)XE132.

Acconeer received its largest order to that date from BEYD in August. The order amounted to USD 164,000 and mainly related to the radar sensor A1 and will be used for delivery to customers in China.

Björn Bengtsson was appointed to new CFO, starting on 1 September. Björn has more than 20 years of experience in auditing and accounting at PwC and in recent years as the owner of the accounting firmFinansBalans.FinansBalanshasbeenprovidingaccounting services to Acconeer since 2018.

In September, Acconeer signed a purchase agreement with Future Electronics. The agreement enables Future Electronics to purchase and resell Acconeers A1 radar sensor as well as related modules andevaluationkits(EVK).

On September 10, it was announced that Acconeer has delivered more than 200,000 A1 radar sensors in total since the company began selling evaluation kits (EVK)inFebruary2018.

In November, it was announced that a distribution agreement had been signed with the Japanese distributor Marubun. The agreement concerns Acconeer's radar sensors together with related modulesandevaluationkits(EVK)fortheJapanesemarket.

At the end of November, another order was received from Digi-Key. The order related to the radar sensor A1 and the IoT module XM122 and its value amounted to USD 37,000.

In December, Acconeer received an order from BEYD worth USD 421,000. This is Acconeer's largest order to date. It related to the radar sensor A1 and will be used for the production of customers' products.

Itisthecompany'sassessmentthattheeffectsof Covid-19 has had a limited impact on operations

in 2020. No impact was seen on the development side,whilemanufacturingwassomewhataffectedby a global shortage of processors that occurred in connection with Covid-19. Regarding demand for the company's products, we see that some customer projects have been delayed, but the assessment is that this falls within the margin of uncertainty that always exists.

Events after the end of the year Aftertheendofthefinancialyearitwasannouncedin that Sweden's Innovation Agency has granted Acconeer 4 million SEK for research on sleep monitoring using radar. The project will run for three years starting in April 2021 and will be a consortium with Sleepiz based in Switzerland and the University of Gothenburg, Sweden.

Acconeer received orders from CODICO (USD 96,000), Glyn Limited (USD 156,000) and Digi-Key (USD 47,000).

Acconeer and Alps Alpine signed a joint development agreement of Next-Generation Sensing Technology. The contract is based on the principles in the MoU signed and announced in April 2020, and prescribes that Alps Alpine will contribute up to USD 6 million towards the development of which USD 3.85 million is paid as a Non Recurring Engineering fee and the balance will be invested in tools and third party IP. In return, Alps Alpine will receive exclusivity for the new product for the automotive market. The product is planned to be ready for production during 2024.

Itisthecompany'sassessmentthattheeffectsof Covid-19 will have a limited impact on operations in 2021. We expect no impact on either the development side or the manufacture of sensors, whilethemanufactureofmoduleswillbeaffectedby a global shortage on processors that have arisen in connection with Covid-19. Regarding demand for the company's products we expect further delays in customer projects, fewer start-up projects and that our customers'productionratewillbeaffectedbythelackof processors.

SIGNIFICANT CIRCUMSTANCES The company had one major owner (more than 10%)on 2020-12-31: BGA Invest (11,66%).

EXPECTED FUTURE DEVELOPMENT, KEY RISKS AND UNCERTAINTY FACTORS There is a very strong interest in Acconeer's solution,from customers in a wide range of segments andapplications. Some of these hold prominent positionsin their respective markets.

As with every early-stage company, Acconeer facessignificantrisks.Thecompanyisworkingcontinouslyto make sure that the Board of Directors and theexecutive management consider every alternativecarefully and make informed choices.


Itisthecompany'sassessmentthattheeffectsof Covid-19 will have a limited impact on operations in 2021. We expect no impact on either the development side or the manufacture of sensors, whilethemanufactureofmoduleswillbeaffectedby a global shortage on processors that have arisen in connection with Covid-19. Regarding demand for the company's products we expect further delays customer projects, fewer start-up projects and that our customers'productionratewillbeaffectedbythelackof processors.Financing needsAcconeer will continue to develop the product in the future,whichwillincursignificantcosts.Boththesizeand the timing of any future capital needs depend on a number of factors, including success with product development, revenue generated and collaboration agreements. There is a risk that the Company will seekopportunitiesforfinancing,includingloanfinancing.Ifadditionalexternalcapitalwouldneedto be acquired through a new share issue, existing shareholders' holdings risk being diluted. There is a risk that new capital cannot be raised when the need arises, that it cannot be procured on terms favorable to the Company or that such capital would not be sufficienttofinancethebusinessaccordingtothe Company's deferred plan, which could have adverse effectsontheCompany'sdevelopmentandinvestmentopportunities. Acconeer is thus dependent on the fact that in the future capital can be raised to the extent required. Possible delays in product development may meanthatcashflowisgeneratedlaterthanplanned.In the event that the Company fails to raise capital when the need arises, there is a risk of temporary development stoppage or that the Company is forced to conduct the business at a lower rate than desired, which may lead to delayed or missing revenues. There is also a risk that Acconeer will have to substantially curtail the Company's planned activities or ultimately discontinue operations.

Delivery and manufacturing risksProblems with quality in mass production can arise whichcanaffectAcconeer'sabilitytoensuresmoothdeliveriesandsatisfiedcustomers.Furthermore,customers may have problems integrating the product and achieving expected results. This can have a negative impact on the Company's operations, earningsandfinancialposition.Acconeerisaso-calledfabless company, which means that all manufacturing and production testing is outsourced. This means that Acconeer has reduced, or none, control over production and production testing. In the event that problems or other obstacles arise with the Company's production and production testing, this may have a negative impact on the Company's operations, earningsandfinancialposition.Althoughnoproblemsor other obstacles arise with the manufacture and

production testing of Acconeer's products, there is a risk that the Company's products will not achieve commercial success.

Intellectual property rights, confidentiality, business secrets and the likeAcconeer's future success depends on the Company's ability to maintain intellectual property protection in the form of patents, future trademarks, company names and domain names that are protected by intellectual property law and agreements. There is a risk that the Company will not be able to obtain or retain patents for its products or technology or obtain patents for new ones. In the event that a third party holds a patent covering the same product or technology as Acconeer, the Company may be forced to pursue legal processes, including internationally, to determine whether commercialization of a product or technology is feasible. The company may also be forced to pursue legal proceedings, even internationally, in the event that a third party is deemed to infringe on the Acconeer patent.Thecostofsuchprocessescanbesignificant.The Company also risks losing such processes, which could mean that the Company's right to intellectual property is terminated. All of these factors can have a materialadverseeffectontheCompany'soperations,earningsandfinancialoperations.

Thereisnoguaranteethatconfidentialityagreements with employees, consultants and business partnersfullyprotectagainstdisclosureofconfidentialinformation, against the right of employees, consultants and business partners to intellectual property rights or that the agreements provide sufficientpenaltiesforbreachofcontract.Inaddition,Acconeer's business secrets may otherwise be known or developed independently by competitors. If the Company's internal information and knowledge cannot beprotected,operationsmaybeadverselyaffected.

Market and competition-related risksSome product application areas within several of the market segments that Acconeer wishes to enter do not yet exist, which may mean that it may take longer than expected for the Company's products to reach the market and generate revenue within these segments. This results in forecasting uncertainty. Even in cases where areas of use already exist, it must be taken into account that the Company sells new technology, which may mean that the customer response may take longer than expected. This, in turn, can lead to longer revenueandcashflowgeneration.Furthermore,competitors to the Company may have developed, or may develop, directly or indirectly competing products or other alternative solutions that can meet the same underlying customer needs as the Company's products,whichcouldadverselyaffectAcconeer'ssales opportunities.


Regulatory barriersAcconeer's products operate within the unlicensed 60 GHz band, meaning that all end-user products must betype-approved/certifiedbyrelevantregulatorysystems. Thus, there is a risk that the Company, or others using Acconeer's products in its end-user products, will not receive or lose type approval / certificationsand/orotherapprovalsnecessarytosell end-user products with Acconeer's products per se. Every product placed on the market needs a type approval from the respective country or region's equivalent to the Post and Telecom Agency. Acconeer workswiththefollowingcertifiedtesthouses,CetecomGmbHandTUVRheinlandJapanLtd.Thesetesthouses verify the product against current regulations and ensure that type approval is obtained. Even if the Company, or others who use Acconeer's products in its end-user products, receive the necessary permits and approvals, there is a risk that the Company's products will not reach commercial success. In the event that the Company, or others using Acconeer's products in its end-user products, in one or more markets fails to obtain new or retain necessary permits forthebusiness,itmayhaveamaterialadverseeffectontheCompany'soperations,financialpositionandresults.

FINANCINGThe Board continuously evaluates the company's needforfinancingandwiththeaimofbeingabletoraise working capital and seize future opportunities to acquirelong-termstrongownersandtofurtherfinancethe Company's growth strategy, proposed the Annual General Meeting to approve an authorization for the Board to decide on a new issue. shares up to 25% of the total number of shares.

Itisthecompany'sassessmentthattheeffectsof Covid-19 will have a limited impact on operations in 2021. We expect no impact on either the development side or the manufacture of sensors, whilethemanufactureofmoduleswillbeaffectedby a global shortage on processors that have arisen in connection with Covid-19. Regarding demand for the company's products we expect further delays customer projects, fewer start-up projects and that our customers'productionratewillbeaffectedbythelackof processors.

The Board of Directors and the Chief ExecutiveOfficerofAcconeerABherebypresenttheannualreportforthefinancialyear2020-01-01-2020-12-31.


AMOUNTS IN KSEK 2020 2019 2018 2017 2016

Net sales 9,505 5,508 953 33 0

Own work capitalized 0 0 9,915 13,026 9,680

Operating result -62,309 -68,562 -39,044 -23,073 -12,459

Balance sheet total 128,442 130,202 194,498 243,067 77,938

Solidity % 94 92 95 92 93

SeeAccountingandvaluationpoliciesfordefinitionsofkeyindicators.

MULTIPLE YEAR OVERVIEW

AMOUNTS IN KSEKSHARE

CAPITAL

FUND FORDEVELOPMENT

COSTS

SHARE PREMIUMRESERVE

RETAINED EARNINGS TOTAL

Opening balance equity 2019-01-01 954 30,990 267,789 -114 501 185,232

Exercise of subscription warrants/new shares 8 2 304 2,312

Issuance of warrants 1 174 1 174

Dissolution of depreciation ofdevelopment costs -6,524 6,524 0

Netprofitorlossfortheyear -68,539 -68,539

Closing balance equity 2019-12-31 962 24,466 271,267 -176,516 120,179

CHANGES IN EQUITY

The following funds (SEK) are available to the annual general meeting

AmountRetained loss -169,992,310Premium reserve 333,688,882Loss for the year -62,311,062Total 101,385,510

The Board of Directors proposes the following distribution: To be retained 101,385,510

ThefinancialresultandpositionoftheCompanyingeneralissetoutintheincomestatement,balancesheet,cashflowstatementandnotesbelow.

PROPOSED APPROPRIATIONS OF PROFIT OR LOSS

AMOUNTS IN KSEKSHARE

CAPITAL

FUND FORDEVELOPMENT

COSTS

SHARE PREMIUMRESERVE

RETAINED EARNINGS TOTAL

Opening balance equity 2020-01-01 962 24,466 271,267 -176,516 120,179

New share issue 203 64,789 64,992

Exercise of subscription warrants 835 835

Issue costs 3,203 -3,203

Dissolution of amortisation of development costs -6,524 6,524 0

Netprofitorlossfortheyear -62,311 -62,311

Closing balance equity 2020-12-31 1,165 17,942 333,688 -232,303 120,492


INCOME STATEMENT

AMOUNTS IN SEK NOTE 12020-01-01

-2020-12-312019-01-01

- 2019-12-31

Net sales 9,505,155 5,508,454

Cost of goods sold 2 -3,748,972 -2,129,008

Grossprofit 5,756,183 3,379,446

Operating expenses 3-12

Sales expenses -18,026,626 -17,482,163

Administrative expenses -11,562,198 -11,459,106

Research and Development expenses -40,262,995 -42,946,708

Other operating income/ expenses 1,787,077 -53,855

Operating result -62,308,559 -68,562,386

Result from financial itemsFinancial income 13 0 24,094

Financial expense 14 -2,503 -1,202

Net financial income/expense -2,503 22,892

Profit or loss before tax -62,311,062 -68,539,494Tax - -Net profit or loss for the year -62,311,062 -68,539,494


BALANCE SHEET

AMOUNTS IN SEK NOTE 1 2020-12-31 2019-12-31

ASSETS

Fixed assets

Intangible fixed assets

Balanced costs for development and similar work 8 25,246,478 34,427,016

Patents 9 1,824,264 1,740,355

27,070,742 36,167,371Tangible fixed assets

Machinery and other technical equipment 10 3,213,347 3,883,857

Equipment,tools,fixturesandfittings 11 158,605 148,791

3,371,952 4,032,648Financial fixed assets

Participations in Group companies 15,16 842,000 842,000

842,000 842,000Total fixed assets 31,284,694 41,042,019

Current assets

Inventories, etc.

Work in progress 5,192,346 2,948,836

Finished goods and merchandise 2,463,273 2,904,814

7,655,619 5,853,650Short-term receivables

Accounts receivable 1,967,493 1,045,694

Receivables from Group companies 1,493,995 657,614

Current tax assets 161,496 0

Other receivables 17 609,541 858,982

Prepayments and accrued income 18 3,099,240 2,790,285

7,331,765 5,352,575

Cash and bank balances

Cash and bank balances 82,169,945 77,953,559

Total current assets 97,157,329 89,159,784

TOTAL ASSETS 128,442,023 130,201,803


BALANCE SHEET (CONT’D)

AMOUNTS IN SEK NOTE 1 2020-12-31 2019-12-31

EQUITY AND LIABILITIES

Equity

Restricted equity

Share capital 19 1,165,025 961,925

Fund for development costs 17,941,719 24,465,987

19,106,744 25,427,912Non-restricted equity

Share premium reserve 333,688,882 271,267,184

Retainedprofitorloss -169,992,310 -107,977,085

Netprofitorlossfortheyear -62,311,062 -68,539,494

101,385,510 94,750,605

Total equity 120,492,254 120,178,517

Short-term liabilitiesAccounts payable 1,095,120 2,931,088

Current tax liabilities 0 102,198

Other liabilities 661,751 599,379

Accruals and deferred income 20 6,192,898 6,390,621

7,949,769 10,023,286

TOTAL EQUITY AND LIABILITIES 128,442,023 130,201,803


CASH FLOW STATEMENT

AMOUNTS IN SEK NOTE 12020-01-01

-2020-12-312019-01-01

-2019-12-31

Operating activitiesResultafterfinancialitems -62,311,062 -68,593,494

Adjustmentsforitemsnotincludedincashflow 21 11,774,640 11,524,558

Income tax paid -263,695 155,776

Cash flow from operating activities before changein working capital -50,800,117 -56,859,160

Cash flow from change in working capitalChange in inventories -1,801,969 -1,878,426

Change in receivables -921,800 -492,463

Change in short-term receivables -895,895 -2,644,959

Change in trade payables -1,835,968 967,485

Change in current liabilities -135,349 205,279

Cash flow from operating activities -56,391,098 -60,702,244

Investing activitiesInvestmentsinintangiblefixedassets -322,993 -384,343

Investmentsintangiblefixedassets -1,694,322 -142,422

Cash flow from investing activities -2,017,315 -526,765

Financing activitiesNew share issue after issue costs 61,789,799 0

Raised loans 0 -517,680

Exercise of subscription warrants/new shares 0 2,311,861

Issue of warrants 835,000 1,174,000

Cash flow from financing activities 62,624,799 2,968,581

CASH FLOW FOR THE YEAR 4,216,386 -58,260,428

Cash and cash equivalents at the beginning of the yearCash and cash equivalents at the beginning of the year 77,953,559 136,213,987

Cash and cash equivalents at the end of the year 82,169,945 77,953,559


NOTES

General informationThe annual report is prepared in accordance with the Swedish Annual Accounts Act as well as the Swedish Accounting Standards Board BFNAR 2012:1 annual report and consolidated (K3).

Receivables are recognized at the amount expected to be received.

Other assets and liabilities are recognized at cost unless otherwise indicated.

Receivables and liabilities in foreign currency are valued at the exhange rate at the balance sheet date. Exchange gains or losses on operating receivables and -payables are recognized in the operating result whileexchangegainsorlossesonfinancialclaimsandliabilitiesarerecognizedasfinancialitems.

Group structureThe company is a parent company, but according to the exemptions stated in the Swedish Annual Accounts Act 7 ch. 3 s. no consolidated accounts are prepared. The subsidiary Acconeer Incentive AB has no operations of its own but is used only to administer the warrants available in Acconeer AB.

New accounting policyAs of Q1 2020, the company has switched to aFunctional income statement. Comparative periods have been recalculated. Considering that Acconeer is in a start-up phase and not yet achieved any fullscale production only material costs are reported in Cost of goods sold. Cost of operations and product management function is reported in Sales costs, and amortization of Intangible assets is included in Research and development cost. More information can be found in the notes 3 and 4.

Recognition of revenueRevenue has been recognized at the fair value of the consideration received or receivable to the extent thatitislikelythatthefinancialbenefitsarisingfromitwill be available to the company and can be reliably calculated.

Acconeer's sale of goods is taken as income in its entirety when the risk passes to the buyer in accordance with delivery termsIn cases where sales are made to a distributor, the revenue recognition takes into account any returns and discounts.

ACCOUNTING PRINCIPLES FOR PARTICULAR BALANCE AND INCOME SHEET ITEMS

Operational lease agreementsAll lease agreements where the Company is the lessee are reported as operational lease agreements, regardlessofwhethertheagreementsarefinancialor operational. The lease cost is recognized as an expense on a straight-line basis over the lease period.

In the Company's accounts, the operational lease agreements correspond essentially to rented premises.TheleasingcontractfortheSwedishofficesis for a period of three years with a possibility for the Company to extend it.

Remuneration to employeesRemuneration to employees refers to all kinds of remuneration given by the Company to its employees.Short-termemployeebenefitsincludesalaries,paidannual leave, compensated absences, bonus andpost-employmentbenefits.Thecompanyhasonlydefinedcontributionpensionplansandnodefinedbenefitpensionplans.Short-termemployeebenefitsare recognized as expenses and liabilities when there is legal or constructive obligation to pay a remuneration due to a previous event and a reliable estimate of the amount can be given.

Intangible fixed assetsResearch and development costsCosts for research, that is, planned and systematic searchförnewscientificortechnologicalknowledgeand insight, is recognised as an expense when incurred. Development costs are recognised according to the capitalization model. This means that costs incurred during development are recognized as assets when all of these conditions are met:

• It is technically possible to complete the intangible fixedassetforuseorsale.

• Theintentionistocompletetheintangiblefixedasset and to use it or sell it.

• It is feasible to use or sell the intangible asset.• It is likely that the intangible asset will generate futureeconomicbenefits.

NOTE 1 ACCOUNTING AND VALUATION POLICIES


• Sufficientandadequatetechnological,economicand other resources are available to complete the development and use or sell the intangible asset.

• The costs that are attributable to the intangible asset can be calculated reliably.

Internally generated intangible assets are recognized at cost less accumulated amortisation. The cost of an internally generated intangible asset is all directly attributable development expenditure (for example raw materials and salaries).

Other intangible fixed assetsOtherintangiblefixedassetsacquiredbytheCompany are recognized at cost less accumulated amortisation and impairment. Expenditure for new patent applications is capitalized as incurred, while expenditure for protection of existing patents is expensed.

Fixed assetsTangibleandintangiblefixedassetsarerecognizedat cost less accumulated deprecitation/amortisation according to plan and impairment. Depreciation/amortisation is linear over the asset's estimated useful life,takingsignificantresidualvaluesintoaccount.Thefollowing depreciation rates are applied:

Intangible fixed assetsBalanced costs for development work 5 yearsPatents 10 years

Tangible fixed assetsMachinery and other technical equipment 5-6 yearsEquipment,tools,fixturesandfittings 5years

Public grantsAccountingforgrantsrelatedtofixedassets.Publicgrants related to assets are recognized on the balance sheet by deducting the grant from the recognized value of the asset.

Shares and participations in subsidiariesShares and participations in subsidiaries are recognized at cost less impairment. The cost includes the purchase price paid for the shares as well as acquisition costs. Any capital injections and intra-group transfers are added to the cost as they occur. Dividends from subsidiaries are recognized as income.

InventoriesThe inventories are valued at the lower of cost and net realizable value at the balance sheet date. Net realizable value refers to the estimated selling price of the goods less the transaction costs. The chosen valuationmethodtakestheeffectoftechnologicalobsolescence into account.

Financial instrumentsDerivative instrumentsThe Company holds derivatives in the form of employee options (share appreciation rights programmes). These are categorized as "at fair value throughprofitorloss"inthesubcategory"heldfortrading".Subscription warrantsNo initial cost has been incurred since a valuation at fair value through an option pricing model corresponds to the premium received by the Company.

The Company has already established warrant programmes for certain present and former executive directors and other key employees, consisting of subscription warrants.

The subscription warrants have been issued in the customary way. 2018/2021 outstanding warrants are covered of pre-emption rights for Acconeer in the event of transfers. All of the subscription warrants outstanding are covered by Acconeer's right of firstrefusalintheeventoftransfer.TheCompanyhas furthermore reserved the right to buy back the warrants if the employment is terminated. If the subscription warrants are fully exercised, the share capital will increase by SEK 49,100 and the number of sharesby982,000,correspondingtoadilutiveeffectof approximately 4.2 percent.

The options programs are distributed as follows:2018/2021, paid subscription price per option SEK 3.96, subscription price per share SEK 31.80 during 2021,45,000 options.2018/2021, paid subscription price per option SEK 5.34, subscription price per share SEK 31.80 during 2021,18,000 options.2018/2021, paid subscription price per option SEK 1.81, subscription price per share SEK 31.80 during 2021,19,000 options.2019/2022, paid subscription price per option SEK 2.35, subscription price per share SEK 29.27 during 2022,300,000 options.2019/2022 paid subscription price per option SEK 1.45, subscription price per share SEK 29.27 during 2022, 300,000 options.2020/2023, paid subscription price per option SEK 2.00, subscription price per share SEK 21.13 during 2022, 150,000 options.2020/2023 paid subscription price per option SEK 3.57, subscription price per share SEK 21.13 during 2023,150 000 options.

Accounts receivable/Short-term receivablesAccounts receivable and short-term receivables are recognized as current assets to the amount expected to be paid less individually assessed bad debt.Loans and accounts payableLoans payable and accounts payable are initially


recognized at cost less transaction costs. If the recognizedamountdiffersfromtheamounttoberepaidatmaturity,thedifferenceisrecognizedasinterest expense over the life of the loan by means oftheeffectiveinterestrateoftheinstrument.Atmaturity,the recognized amount will thereby be consistent with the amount to be repaid.

Income taxesTaxonprofitfortheyearintheincomestatementconsists of current tax and deferred tax liabilities. Currenttaxisincometaxesforthecurrentfinancialyear,relatingtotaxableprofitfortheyearandpartoftaxableprofitfrompreviousyearyettoberecognized.Deferred tax liabilities is income taxes on taxable profitrelatingtofuturefinancialyearsduetoprevioustransactions or events.

Deferred tax liabilities are recognized for all taxable temporarydifferencesexcepttemporarydifferencesarisingfromtheinitialrecognitionofgoodwill. Deferred tax assets are recognized for deductibletemporarydifferencesandforthecarryforward of unused tax losses. The valuation is based on how the recognized value of the corresponding asset or liability is expected to be recovered or settled. The amounts are based on tax rates and tax laws that have been enacted before the balance sheet date and not calculated in present value terms.

Deferred tax assets are valued at most at the amount likely to be recovered based on current and future taxable results. The valuation is reassessed on every balance sheet date.The assessment of the recognition of a deferred tax asset will take place only when the Companyhasshownprofitability.

Cash flow statementThecashflowstatementisdrawnupusinganindirectmethod.Thereportedcashflowcoversonlyoperations resulting in cash transactions.

In cash and cash equivalents, the Company includes cash, available balances with banks and other credit insitutions as well as short-term, highly liquid investments listed on a market with maturity less than three months from the date of acquisition. Changes in blocked funds are reported in the investing activities.

Definitions of indicatorsNet salesThe undertaking's main income, invoiced costs, additional income and income adjustments.

Result after depreciation/amortisationResult after depreciation/amortisation and items affectingcomparability,butbeforefinancialincomeand expenses.

Balance sheet totalThe Company's entire assets, equity capital and liabilities.

Solidity %Adjusted equity capital (equity and untaxed reserves less deferred tax) in relation to the balance sheet total, expressed in percent.

Estimates and assessmentsThe management makes estimates and assessments of the future. These estimates will rarely correspond to the actual outcome. Those estimates and assessments which may lead to risk of having to materially adjust the carrying amounts of assets and liabilities are primarily the valuation of intangible assets.

It is examined every year whether there are any indications that the value of the assets is lower than the recognized value. If such an indication is found, the asset's recoverable amount is determined as the lower of the fair value of the asset less costs to sell and the value in use.


2020-01-01-2020-12-31

2019-01-01-2019-12-31

Other operating income 278,421 221,903

WASP 750,000 0

Vinnovagrant 745,082 135,702

SER Prize 0 20,000

Sick pay compensation with regard to Corona regulations 13,574 0

1,787,077 377,605

NOTE 2 OTHER OPERATING INCOME

NOTE 3 OPERATING EXPENSES BY COST CATEGORY

2020FULL YEAR

2019 FULL YEAR

Other operating income -1,787,077 -377,605

Raw materials and consumables 3,848,347 2,205,001

Other external costs 23,751,602 28,245,939

Personnel costs 33,833,849 32,040,486

Depreciationoffixedtangibleandintangible assets 11,774,640 11,524,558

Other operating costs 392,353 432,460

1,787,077 74,070,839 This year, the Board's costs are included in Other external costs with SEK 567,600 but are included in the basis for the note Salaries and other remuneration.

NOTE 4 INFORMATION ABOUT THE COMPANY'SOPERATING EXPENSES

For the period, the operation and product management function amounts to kSEK 11,276 (11,565) anddepreciationoftangibleandintangiblefixedassetstokSEK11,775(11,525).Given that Acconeer is in a start-up phase and has not yet reached full-scale production,are these costs included in Sales Costs and Research and Development Costs.


NOTE 7 REMUNERATION AND OTHER BENEFITS

2020-01-01 - 2020-12-31 BASE PAYVARIABLE

PAYOTHER

BENEFITSPENSION

EXPENSES TOTAL

Remuneration and benefits

ChiefExecutiveOfficer 1,393,875 36,523 0 322,284 1,752,682

Other executive directors*) 5,333,147 139,497 0 889,452 6,362,096

6,727,022 176,020 0 1,211,736 8,114,778

2019-01-01 - 2019-12-31 BASE PAYVARIABLE

PAYOTHER

BENEFITSPENSION

EXPENSES TOTAL

Remuneration and benefits

ChiefExecutiveOfficer 1,219,038 67,047 6,899 262,222 1,555,206

Other executive directors*) 4,485,117 246,682 7,891 755,976 5,495,666

5,704,155 313,729 14,790 1,018,198 7,050,872

*) Included in "Other employees" in the table "Salaries and remunerations".

AVERAGENUMBEROFFULL-TIMEEQUIVALENTEMPLOYEES2020-01-01

-2020-12-312019-01-01

-2019-12-31

Sweden 37 35

Of whom men 32 30

Total 37 35

Gender distribution of the Board and managementPercentage of women, %Board of Directors 20 20

Other executive directors 11 13

NOTE 6 EMPLOYEES AND PERSONNEL COSTS

2020-01-01-2020-12-31

2019-01-01-2019-12-31

Salaries and remunerationsDirectorsandChiefExecutiveOfficer*) 1,971,386 1,929,984

Other employees 23,497,922 18,151,542

25,469,308 20,081,526

Social security contributions Pension costs for directors and CEO 322,284 262,222

Pension costs for other employees 2,582,414 2,201,760

Other statutory and contractual social security contributions 5,777,886 6,686,538

8,682,584 9,150,520Total salaries, remunerations, social security contributions and pension costs 34,151,892 29,323,046

*) The CEO's employment has a three month period of notice when terminated by either party.

NOTE 5 SALARIES AND REMUNERATIONS


NOTE 10 MACHINERY AND OTHER TECHNICAL EQUIPMENT

2020-01-01-2020-12-31

2019-01-01-2019-12-31

Cost, opening balance 10,573,640 10,459,936

Purchases 1,628,760 113,704

Accumulated cost, closing balance 12,202,400 10,573,640

Depreciation, opening balance -6,689,783 -4,595,381

Depreciation for the year -2,299,270 -2,094,402

Accumulated depreciation, closing balance -8,989,053 -6,689,783

Carrying amount 3,213,347 3,883,857

NOTE 8 BALANCED COSTS FOR DEVELOPMENT AND SIMILAR WORK

2020-01-01-2020-12-31

2019-01-01-2019-12-31

Cost, opening balance 45,902 688 45,902,688

Accumulated cost, closing balance 45,902 688 45,902,688Amortisation, opening balance -11,475,672 -2,295,134

Amortisation for the year -9,180,538 -9,180,538

Accumulated amortisation, closing balance -20,656,210 -11,475,672

Carrying amount 25,246,478 34,427,016

NOTE 9 PATENTS2020-01-01

-2020-12-312019-01-01

-2019-12-31

Cost, opening balance 2,242,346 1,858,003

Acquisitions 322,993 384,343

Accumulated cost, closing balance 2,565,339 2,242,346

Amortisation, opening balance -501,991 -300,313

Amortisation for the year -239,084 -201,678

Accumulated amortisation, closing balance -741,075 -501,991

Carrying amount 1,824,264 1,740,355


NOTE 14 INTEREST COSTS AND SIMILAR ITEMS

2020-01-01-2020-12-31

2019-01-01-2019-12-31

Interest costs 2,503 1,202

2,503 1,202

NOTE 15 PARTICIPATIONS IN GROUP COMPANIES2020-01-01

-2020-12-312019-01-01

-2019-12-31

Acquisition value, opening balance 842,000 842,000

Accumulated cost, closing balance 842,000 842,000

Carrying amount 842,000 842,000

NOTE 13 OTHER INTEREST INCOME AND SIMILAR ITEMS2020-01-01

-2020-12-312019-01-01

-2019-12-31

Other interest income 0 24,094

0 24,094

2020-01-01-2020-12-31

2019-01-01-2019-12-31

Cost, opening balance 249,274 220,556

Purchases 65,562 28,718

Accumulated cost, closing balance 314,836 249,274

Depreciation, opening balance -100,483 -52,543

Depreciation for the year -55,748 -47,940

Accumulated depreciation, closing balance -156,231 -100,483

Carrying amount 158,605 148,791

NOTE 12 TRANSACTIONS BETWEEN GROUP COMPANIES2020-01-01

-2020-12-312019-01-01

-2019-12-31

No intra-group transactions have taken place during the year.

Share of total purchases for the year made from group companies 0.00% 0.00%

Share of total sales for the year made to group companies 0.00% 0.00%

NOTE 11 EQUIPMENT, TOOLS, FIXTURES AND FITTINGS


NOTE 19 NUMBER OF SHARES AND QUOTA VALUE

NAMENUMBER OF

SHARESQUOTAVALUE

Number of A shares 23.300.500 0.05

23.300.500

NOTE 20 ACCRUALS AND DEFERRED INCOME

2020-12-31 2019-12-31

Accrued holiday pay 1,695,079 1,402,566

Accrued social security cost 532,594 440,686

Special payroll tax 704,680 597,762

DeferredgrantVinnova 85,716 123,798

Deferred income 449,534 347,915

Accrued Directors' fees 567,600 558,000

Accrued bonus incl. social security cost 825,833 1,474,537

Other accrued expenses 1,331,862 1,445,357

6,192,898 6,390,621

NOT 18 PREPAID EXPENSES AND ACCRUED INCOME

2020-01-01-2020-12-31

2019-01-01-2019-12-31

Advance to supplier 1,942,915 1,892,962

Prepaid rent 302,101 295,140

Other prepaid expenses 854,224 602,183

3,099,240 2,790,285

NOTE 16 SPECIFICATION OF PARTICIPATIONS IN GROUP COMPANIES

NOTE 17 OTHER RECEIVABLES

2020-12-31 2019-12-31

RecoverableVAT 322,368 854,442

Other receivables 287,173 4,540

609,541 858,982

NAMECAPITAL

SHARE VOTINGRIGHTSNUMBER OF

SHARESBOOKVALUE

MARKETVALUE

Acconeer Incentive AB 100% 100% 50,000 842,000 838,962

842,000 838,962

NAME REG.NO.REGISTERED

OFFICEEQUITY

CAPITAL RESULT

Acconeer Incentive AB 559156-2474 Lund, Sweden 838,962 -1,394


NOTE 21 NON-CASH ITEMS

2020-12-31 2019-12-31

Depreciation 11,774,640 11,524,558

11,774,640 11,524,558

NOTE 22 RELATED PARTY TRANSACTIONSNo related party transactions except for directors' fees.

NOTE 23 SIGNIFICANT EVENTS AFTER THE END OF THE FINANCIAL YEAR

Aftertheendofthefinancialyearitwasannouncedthat Sweden's Innovation Agency has granted Acconeer 4 million SEK for research on sleep monitoring using radar. The project will run for three years starting in April 2021 and will be a consortium with Sleepiz based in Switzerland and the University of Gothenburg, Sweden.

Acconeer received orders from CODICO (USD 96,000), Glyn Limited (USD 156,000) and Digi-Key (USD 47,000).

Acconeer and Alps Alpine signed a joint development agreement of Next-Generation Sensing Technology. The contract is based on the principles in the MoU signed and announced in April 2020, and prescribes that Alps Alpine will contribute up to USD 6 million towards the development of which USD 3.85 million is paid as a Non Recurring Engineering fee and

the balance will be invested in tools and third party IP. In return, Alps Alpine will receive exclusivity for the new product for the automotive market. The product is planned to be ready for production during 2024.

Itisthecompany'sassessmentthattheeffectsof Covid-19 will have a limited impact on operations in 2021. We expect no impact on either the development side or the manufacture of sensors, whilethemanufactureofmoduleswillbeaffectedby a global shortage on processors that have arisen in connection with Covid-19. Regarding demand for the company's products we expect further delays in customer projects, fewer start-up projects and that our customers'productionratewillbeaffectedbythelackof processors.


SIGNATURES

The income statement and balance sheet will be submitted for adoption by the Annual General Meeting on 2021-04-27

Lund, 2021-03-24

Thomas RexChairman of the Board

Lars-Erik Wernersson

Git Sturesjö Adolfsson Bengt Adolfsson

Johan Paulsson Lars LindellChief Executive Officer

Our auditor’s report was submitted on 2021-03-24Öhrlings PricewaterhouseCoopers AB

OlaBjärehäll Authorized Public Accountant


AUDITOR'S REPORTTo the General Meeting of the Shareholders of Acconeer AB (publ), corporate identity number 556872-7654

REPORT ON THE ANNUAL ACCOUNTSOpinionsWe have audited the annual accounts of Acconeer AB for the year 2020. The annual accounts of the company are included on pages 20-21 in this document.

In our opinion, the annual accounts have been prepared in accordance with the Annual Accounts Act andpresentfairly,inallmaterialrespects,thefinancialposition of Acconeer AB as of 31 December 2020 and itsfinancialperformanceandcashflowfortheyearthen ended in accordance with the Annual Accounts Act. The statutory administration report is consistent with the other parts of the annual accounts.

We therefore recommend that the general meeting of shareholders adopts the income statement and balance sheet for Acconeer AB.

Basis for OpinionsWe conducted our audit in accordance with International Standards on Auditing (ISA) and generally accepted auditing standards in Sweden. Our responsibilities under those standards are further described in the Auditor’s Responsibilities section. We are independent of Acconeer AB in accordance with professional ethics for accountants in Sweden and haveotherwisefulfilledourethicalresponsibilitiesinaccordance with these requirements.

We believe that the audit evidence we have obtainedissufficientandappropriatetoprovideabasis for our opinions.

Other Information than the annual accountsThis document also contains other information than the annual accounts and is found on pages 1-19 and 42. The Board of Directors and the Managing Director are responsible for this other information.Our opinion on the annual accounts does not cover this other information and we do not express any form of assurance conclusion regarding this other information.

In connection with our audit of the annual accounts, ourresponsibilityistoreadtheinformationidentifiedabove and consider whether the information is materially inconsistent with the annual accounts. In this procedure we also take into account our knowledge otherwise obtained in the audit and assess whether the information otherwise appears to be materially misstated.

If we, based on the work performed concerning this information, conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard

Responsibilities of the Board of Director’s and the Managing DirectorThe Board of Directors and the Managing Director are responsible for the preparation of the annual accounts and that they give a fair presentation in accordance with the Annual Accounts Act. The Board of Directors and the Managing Director are also responsible for such internal control as they determine is necessary to enable the preparation of annual accounts that are free from material misstatement, whether due to fraud or error.

In preparing the annual accounts, The Board of Directors and the Managing Director are responsible for the assessment of the company's ability to continue as a going concern. They disclose, as applicable, matters related to going concern and using the going concern basis of accounting. The going concern basis of accounting is however not applied if the Board of Directors and the Managing Director intend to liquidate the company, to cease operations, or has no realistic alternative but to do so.

Auditor’s responsibilityOur objectives are to obtain reasonable assurance about whether the annual accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and generally accepted auditing standards in Sweden will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, theycouldreasonablybeexpectedtoinfluencetheeconomic decisions of users taken on the basis of these annual accounts.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:• Identify and assess the risks of material

misstatement of the annual accounts, whether due to fraud or error, design and perform audit


procedures responsive to those risks, and obtain auditevidencethatissufficientandappropriateto provide a basis for our opinions. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of the company’s internal control relevant to our audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressinganopinionontheeffectivenessofthecompany’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Director's and the Managing Director.

• Conclude on the appropriateness of the Board of Director's and the Managing Director's use of the going concern basis of accounting in preparing the annual accounts. We also draw a conclusion, based on the audit evidence obtained, as to whether any material uncertainty exists related toeventsorconditionsthatmaycastsignificantdoubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the annual accounts or, if such disclosures are inadequate, to modify our opinion about the annual accounts. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the annual accounts, including the disclosures, and whether the annual accounts represent the underlying transactions and events in a manner that achieves fair presentation.

We must inform the Board of Directors of, among other matters, the planned scope and timing of the audit. We mustalsoinformofsignificantauditfindingsduringouraudit,includinganysignificantdeficienciesininternalcontrolthatweidentified.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTSOpinionsIn In addition to our audit of the annual accounts, we have also audited the administration of the Board of Director's and the Managing Director of Acconeer AB for the year 2020 and the proposed appropriations of thecompany’sprofitorloss.

We recommend to the general meeting of

shareholdersthattheprofitbeappropriatedinaccordance with the proposal in the statutory administration report and that the members of the Board of Director's and the Managing Director be dischargedfromliabilityforthefinancialyear.

Basis for OpinionsWe conducted the audit in accordance with generally accepted auditing standards in Sweden. Our responsibilities under those standards are further described in the Auditor’s Responsibilities section. We are independent of Acconeer AB in accordance with professional ethics for accountants in Sweden and haveotherwisefulfilledourethicalresponsibilitiesinaccordance with these requirements.

We believe that the audit evidence we have obtainedissufficientandappropriatetoprovideabasis for our opinions.

Responsibilities of the Board of Director’s and the Managing DirectorThe Board of Directors is responsible for the proposal forappropriationsofthecompany’sprofitorloss.At the proposal of a dividend, this includes an assessmentofwhetherthedividendisjustifiableconsidering the requirements which the company's type of operations, size and risks place on the size of the company's equity, consolidation requirements, liquidity and position in general.

The Board of Directors is responsible for the company’s organization and the administration of the company’saffairs.Thisincludesamongotherthingscontinuousassessmentofthecompany'sfinancialsituation and ensuring that the company´s organization is designed so that the accounting, management of assetsandthecompany’sfinancialaffairsotherwiseare controlled in a reassuring manner. The Managing Director shall manage the ongoing administration according to the Board of Directors’ guidelines and instructions and among other matters take measures thatarenecessarytofulfillthecompany’saccountingin accordance with law and handle the management of assets in a reassuring manner.

Auditor’s responsibilityOur objective concerning the audit of the administration, and thereby our opinion about discharge from liability, is to obtain audit evidence to assess with a reasonable degree of assurance whether any member of the Board of Directors or the Managing Director in any material respect:• has undertaken any action or been guilty of any

omission which can give rise to liability to the company, or

• in any other way has acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association.

Our objective concerning the audit of the proposed


appropriationsofthecompany’sprofitorloss,andthereby our opinion about this, is to assess with reasonable degree of assurance whether the proposal is in accordance with the Companies Act.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with generally accepted auditing standards in Sweden will always detect actions or omissions that can give rise to liability to the company, or that the proposed appropriations of the company’sprofitorlossarenotinaccordancewiththeCompanies Act.

As part of an audit in accordance with generally accepted auditing standards in Sweden, we exercise professional judgment and maintain professional skepticism throughout the audit. The examination of the administration and the proposed appropriations ofthecompany’sprofitorlossisbasedprimarilyonthe audit of the accounts. Additional audit procedures performed are based on our professional judgment with starting point in risk and materiality. This means that we focus the examination on such actions, areas and relationships that are material for the operations and where deviations and violations would have particular importance for the company’s situation. We examine and test decisions undertaken, support for decisions, actions taken and other circumstances that are relevant to our opinion concerning discharge from liability. As a basis for our opinion on the Board of Directors’ proposed appropriations of the company’s profitorlossweexaminedwhethertheproposalisinaccordance with the Companies Act.

Stockholm 24 March 2021Öhrlings PricewaterhouseCoopers AB

OlaBjärehällAuthorized Public Accountant

Acconeer AB (publ)IDEON GatewayScheelevägen27

223 70 Lund, Sweden+4610 218 92 00

www.acconeer.com

CERTIFIEDADVISERRedeye Aktiebolag

Box 7141103 87 Stockholm, Sweden

+468 121 576 90www.redeye.se

The information herein was submitted for publication on 24 March 2021, 13:00 (CET).

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